T8 - MF V MF Flashcards
could market forces deal with the issue fo publci goods being underprovided
no very unlikely
as there is no profit incetniv e
what si the only way a publci good coudl ebcome supplied and provided by amrket forces
if it becomes a priavte good
why may mf be better on poverty
as state can cause
unemployment traps
depednancy on benefits
how can market forces lead to a reduction in inequality and poverty
lower benefits icnetives to work
creation of jobs
trcikle down effects
sustained economic growth
creates a competitive envrioment
rewards risk
how may market forces deal with inforamtion failiure
better prices and price transparanecy due to comeptiton
how may market forces deal with monopoly power
argument of deregualtion and shit to inc comp in the sector
how may market forces deal with merit godos
say if consumers udnertsnad true costs and beenfits
levels of demand and supply would fall
leading to price mechanism and efficent alloction fo resources
argument of why even after inc information merti good mf may nto eb dealt with via market forces
inelastic demand for the good
how may market forces deal with factor imobbility
job creation
setting up in diff areas of economy to exploit lower costs
increas training to gain comeptitiev advantages
how can market forces deal with voltiale prices
price mechansim will look force consuemrs to look at necxt alternative
how will price mechansim deal with cyclical isnatbiltiy
increased comeptition
job creation
invetsment
high costs of production forces firms to look at cheaper aletrnatives
what is another argument for sayign market forces woudl be better
just say the gov option has to many bad affects and market chocies only make sense
when talkign abotu market forces and gov int and which is better what can you talk abotu other than how market forces coudl deal with shit
why the governemtn method isnt appropriet to deal with it
if there are no ways amrket forces could deal with the market failirue what can you do to still maek a poitn in an essay
say what the benefits of lwoer governetn intevrntion woudl be
how may market forces deal with extenralities
unlikley as tehy arent accoutned for in a free makret
how may market forces deal with demrit goods
once info provision tkaes place price mechanism allocate resources mroe to new consuemr wanst and preferences
which market failirues coudl market forces solve
ineuqlaity
factor immobility
volitalie prices
scarcity
cyclial instabiliy
when market failirues best solved by gov
public goods
info failiure
monopoly
merit goods
extenralities
demerit goods
when will markets achieve aloocative efficnecy and a socially optimum leevl of out put
in comp markets
is allocative efficncy the same as social optimum level
yes
how to decide whetehr price mech shoudl be good and if shit woudl work
look at whetehr by price
signallign new few firms to provide more
incevtivisign new firms to the industry
allocatign resources where its msot demanded
rationign resoruces where they are overdemadned
would deal with the issue
why in a free market is alloactive efficny achieved
as resoruces perfectly followcoonsuemr demand
society surplus is maxamsied
net social beenfit is maxamsied
beenftis fo market forces
alloactiev efficncy
encourgae comp
dynamic efficny - invetsment
job creation adn eco growth
freedom liberty and choice
no risk fo gov fialiure
cons of free markets
market fialiure
ineuqlaity
firms tooooo profit maxamisier
createive destruction
price volitality
